Union Minister Ashwini Vaishnaw on Monday said the Centre will be introducing PAN 2.0, touted as an upgrade to Permanent Account Number (PAN), which serves as a unique taxpayer identification number. PAN 2.0 will be an advanced iteration of the country’s PAN system, aimed at streamlining business and citizen-centric operations.
The PAN 2.0 Project is an e-Governance initiative aimed at enhancing taxpayer registration services by re-engineering business processes through technology-driven transformation of PAN/TAN services. This project represents an upgrade from the existing PAN/TAN 1.0 ecosystem, consolidating both core and non-core PAN/TAN activities, along with the PAN validation service. The ultimate goal is to provide taxpayers with an improved digital experience.
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The older version PAN has been in use since 1972 under Section 139A of the Income Tax Act, and has seen widespread adoption, with 78 crore PANs issued, covering 98 per cent of individuals, Vaishnaw said.
The project is estimated to have financial implications of Rs 1,435 crore. In alignment with the government’s Digital India vision, it will facilitate the utilization of PAN as a “common identifier for all digital systems of specified government agencies”.
Deemed as a refined version of PAN, PAN 2.0 is envisioned to refine and expedite business and citizen-centric operations within the nation.
Here are the key features that PAN 2.0 aims to incorporate:
The project will result in the re-engineering of business processes of taxpayer registration through digital transformation of PAN and TAN services.
Here the key features:
> System Upgrade: A comprehensive overhaul leveraging technological advancements to elevate operational efficiency.
> Common Business Identifier: Integration of PAN as a universal identifier for business-related engagements across specified domains.
> Unified Portal: An integrated platform encompassing all PAN-related services to offer a seamless user experience.
> Cybersecurity Measures: Implementation of stringent security protocols to fortify user data protection against potential cyber threats.
> PAN Data Vault: Mandating secure storage systems for entities using PAN data.
What can be expected from PAN 2.0
The upcoming PAN 2.0 system is anticipated to deliver a seamless and technology-driven experience that aligns with the Digital India initiative spearheaded by the Modi Government. Some key expectations for PAN 2.0 include:
Streamlined processes for both businesses and individuals.
A unified identification system facilitated by the Common Business Identifier.
An efficient grievance redressal mechanism supported by cutting-edge technology solutions.
The overarching goal of PAN 2.0 is to enhance transparency, improve user experience, and fortify data security, thereby advancing towards a fully digital financial ecosystem.
During the cabinet meeting, Minister Vaishnaw revealed that a total of 78 crore PAN Cards have been distributed to individuals. This new project aims to enhance the current tax system utilized by taxpayers. Additionally, the project includes the implementation of a universal business identifier for all business endeavors and the development of a centralized portal for various activities.
Do you need to change your PAN number?
According to Vaishnaw, there will be no requirement for citizens to modify their PAN number. The upcoming PAN 2.0 will be introduced as an enhancement to the current PAN system. Vaishnaw further explains that the new card will feature a QR code for efficient scanning and will be entirely online.